How Much Does It Cost To Make Apps Like Venmo?

By Maryna Cherednychenko

Venmo is very popular. According to Forbes and Market Watch, it has 52 million users and 450 million in revenue. One may think: “What makes it so attractive? It’s just another peer-to-peer app.” Well, it makes sense, but only by halves. As you know, the devil is in the detail. If you want to reach clients, you should not just give people what they want but also guess their wishes upfront.

Do Venmo app owners follow this rule? Judging from the demand for their product, I think the answer is obvious. It is not surprising that many want to follow their steps and create a similar app. Are you one of them? Interested in how much it costs to make an app like Venmo? Well, you are in the right place. In this post, we will reveal all the tips and tricks. So, take a seat.

What Is Venmo? A Bit Of History

In 2012, Venmo was bought by Braintree. They continued to develop the social aspect of the application. This strategy turned out to be a winning one, and the app has gained many users among millennials.

Soon, the Venmo fame reached PayPal. The latter wasn’t long in coming. In 2013, it bought Braintree. Such a move played into Venmo’s hands. Now, the app has gained the support of a world-known company, and users’ trust has grown at times.

At the end of 2019, Venmo’s payment volume reached $24 billion, twice as high as the previous year. See the chart of Venmo market growth below.

Venmo market growth

How Does Venmo Work? Features List And Time Estimation

Venmo user flow

Transfer Money

Estimated time for implementation — 320 hours

Link Bank Account

Estimated time for implementation — 140 hours

Make Purchases

Estimated time for implementation — 480 hours

Split Bill

Estimated time for implementation — 300 hours

Access Contacts

Estimated time for implementation — 10 hours

Request Money

Estimated time for implementation — 240 hours

View History

Estimated time for implementation — 40 hours

Secure Authorization

Estimated time for implementation — 120 hours

Data Encryption

Estimated time for implementation — 160 hours

Account Setting

Estimated time for implementation — 40 hours

Social Feed

Estimated time for implementation — 32 hours

Features of the app similar to Venmo

Is Venmo Safe?

One of the most common scams is purchasing goods via Venmo. Here’s how it works. The buyer offers to pay for an item with the help of Venmo. The seller agrees and ships the product. Venmo blocks the payment because it contradicts the Venmo business model. Money goes back to the buyer, and the seller is left without goods and money.

You do not have to stick to this concept when developing an app like Venmo. Everything depends on your preferences and needs. Analyze your target audience and think of unique options you may offer. The fresh idea is equally important to well-designed features and a beautiful interface. At Softensy, we help find the right path by conducting business analysis and market research. This type of work is included in the cost of project development.

So, How Much Does It Cost To Make App Like Venmo?

In the previous section, we have named the main functions of the app, like Venmo. However, the total estimation goes beyond this list. If you want to launch a similar project, consider adding the following spendings:

  • Business analysis — 240 hours
  • UI/UX design — 200 hours
  • Testing — 460 hours

Having summed up the time for features development and the time for non-development works, we get 2786 hours. To make an app similar to Venmo, you need a team of 10 people. In Ukraine, the average developer’s salary is $35 per hour. Thus, the approximate cost of the app development is 2782 * 10 * 35 = $973700

Venmo features

How Does Venmo Make Money?

Transaction fee from credit cards. Debit card payments are completely free. Yet, if you transfer funds from a credit card, Venmo charges a fixed commission of 3%. Many fintech apps use this old-fashioned way to raise money. It is a proven method to generate income, so, no doubt, you should include it in your app.

Commission for accelerated payments. Usually, Venmo processes payments to bank accounts within 2–3 days. However, the user may expedite the transaction by paying an extra fee. Paid service significantly reduces the time of transfer.

Merchant fee. You can make purchases with Venmo at selected online stores. Such stores enter into a partnership agreement with the Venmo app. The latter, in turn, charges a commission on each transaction. Currently, it is about 3%.

Venmo app monetization

Do You Want To Develop a P2P App Like Venmo?

This article was originally published at Softensy.

Softensy specializes in fintech development and enterprise-level apps. Our team helps companies automate business processes by developing software solutions.